Key Takeaways:
Miniso spinoff Top Toy has filed to list in Hong Kong, aiming to leverage its parent's network of 7,000 global stores as it seeks to copy Pop Mart's success
A $1.3 billion valuation and growing stable of self-developed intellectual property could boost the toymaker's chances of success in an increasingly crowded field
When entrepreneur Ye Guofu founded his chain of Miniso (NYSE:MNSO) (9896.HK)novelty stores in 2013, he took his inspiration from two Japanese retailers, discount chain Daiso, and fast fashion retailer Uniqlo. Miniso became a global giant by pursuing a strategy combining affordability, wide variety and Japanese-style ‘cuteness' or kawaii aesthetics. Using that formula, he built Miniso into a network of 4,305 domestic and 3,307 overseas stores at the end of June, long ago passing Uniqlo's 2,500 stores.
Now, Miniso is moving out of the spotlight to make way for its younger offspring, Top Toy International Group Ltd., which filed for a Hong Kong listing late last month, aiming to cash in on the growing global craze for trendy collectible toys.
Top Toy's listing plan isn't exactly new, as Ye discussed a spinoff and separate IPO for the company as early as 2022. But the new listing looks well timed, coming as trendy collectible toys have become all the rage on the huge success of Pop Mart's (9992.HK) Labubu. The IPO would come just months after a $59.4 million Series A financing in July that valued Top Toy at $1.3 billion, with a unit of Singapore's Temasek contributing $40 million of that for a 3.2% stake.
With heavy-hitters like Temasek and IPO underwriters JPMorgan, UBS and Citic Securities behind him, Ye seems to be taking square aim at Pop Mart, a daunting target. Pop Mart's most recent financial report shows its revenue tripled to 13.8 billion yuan ($1.9 billion) in the first half of this year, while its profit quadrupled to 4.6 ...
